I did figure out to get Turbotax to do the Rollover correctly. For those who are interested, her's what I did.

After entering the 1099r information, and asked whether the withdrawal was for RMD, enter NO. Even though it was intended for this originally, this fact is never specified on the 1099r. Once this is done Turbotax will then ask if the money was returned Answer YES. It will then ask whether it was Rolled Over. Answer YES.